Chapter 17: Store Design
The place in a store where customers can purchase merchandise and have it “wrapped”—placed in a bag. Also called point-of-purchase (POP) counter or checkout area.
What is the cash wrap?
When retailers sell items at their “regular price” but offer frequent discounts/promotions to increase sales.
What is Hi/Lo pricing strategy?
Items with continuous, predictable sales like tomato soup.
What is staple merchandise?
What is a societal goal?
Strengths, weaknesses, opportunities, and threats.
What is a SWOT analysis?
A type of store layout that provides a major aisle to facilitate customer traffic that has access to the store’s multiple entrances.
What is a racetrack layout?
When retailers keep prices somewhere between regular/non-sale prices and deep discount prices.
What is EDLP?
Items with less predictable sales that often become obsolete or out-of-style each season.
What is fashion merchandise?
When a retail owner seeks to increase their reputation and personal, financial gain.
What is a personal goal/objective.
Perceived Benefit/Price
What is value?
The area in a retail store that customers pass through after the decompression zone where retailers display some of their most compelling merchandise.
What is the strike zone?
Fee paid by a vendor for space in a retail store.
What is a slotting fee?
Items with dramatic fluctuations in demand based on the time of year.
What is seasonal merchandise?
Net Profit Margin/Net Sales
What is Net Profit Margin (%)
When a retailer sells a lot of low-profit items.
What is high turnover and low profit margin?
A diagram created from photographs, computer output, or artists’ renderings that illustrates exactly where every SKU should be placed.
What is a planogram?
Retail price - cost
What is the retail markup?
Gross Margin/Average Inventory at Cost
What is GMROI?
Net Sales/Total Assets
What is Asset Turnover?
When a retailer sells few items but makes a lot of profit off of each item.
What is low turnover and high profit margin?
A motivation for shopping in which consumers accomplish a specific task, such as buying a suit for a job interview.
What is utilitarian benefit?
A type of retail communication whereby retailers and vendors pay to have their product included in nontraditional situations, such as in a scene in a movie or television program.
What is product placement?
A system that involves continuously monitoring merchandise sales and generating replacement orders, often automatically, when inventory levels drop below predetermined levels.
What is continuous replenishment/automatic ordering?
Net Profit Margin/Total Assets
Items that a consumer buys frequently without much thought.
What are convenience items?